FedEx Express Transportation and Supply Chain Services (India) Pvt. Ltd. Vs Commissioner of Customs (CESTAT Chennai)
Summary: The Customs, Excise & Service Tax Appellate Tribunal, Chennai, allowed the appeal filed by FedEx Express Transportation and Supply Chain Services (India) Pvt. Ltd., successor to TNT India Pvt. Ltd., and set aside the impugned order imposing penalties of Rs 40 lakhs under Section 114(i) and Rs 60 lakhs under Section 114AA of the Customs Act, 1962. The dispute arose from a Courier Shipping Bill filed on 22.12.2012 for three packages containing 106 Churidhar Tops, in which white crystalline powder was concealed in the stitched/embroidered portions of the garments. Although the initial test indicated Methaqualone, the Central Revenue Laboratory subsequently identified the substance as pseudoephedrine hydrochloride, for export of which a No Objection Certificate from the Central Bureau of Narcotics was required.
The Tribunal first held that the adjudication had travelled beyond the Show Cause Notice. The SCN proceeded against TNT in its capacity as an Authorised Courier for alleged unauthorised outsourcing/sub-contracting and alleged non-compliance with KYC requirements under Regulations 13(i) and 13(j) of the Courier Imports and Exports (Clearance) Regulations, 2010. It did not allege that TNT was the consignor/exporter, had failed to obtain consignor authorisation, knowingly prepared a false declaration, or knowingly aided or abetted attempted smuggling. Findings founded on those additional facts and legal grounds therefore could not be sustained.
